The company is selling back to Carrefour SA almost all of the malls it acquired from the French retail giant about 10 years ago. Through the sale of what amounts to about half of its shopping centers, it intends to reduce its exposure to the struggling hypermarket model to focus on prestige shopping malls, which continue to attract consumers in a fragile European economy.

This U-turn constitutes the most significant initiative by the French landlord since U.S. mall giant Simon Property Group bought 29% of its capital from BNP Paribas in March 2012. (The French bank stills owns around 22% of Klépierre.)

Markets are upbeat on the proposed transaction, with Klépierre shares gaining 1.92% in Paris trading by this afternoon. Exane BNP Paribas analysts say a slimmer Klépierre will “make it more attractive and consolidation more likely.”

The big question for many analysts now is whether Simon Property Group might want to use the transaction as an occasion to buy the rest of Klépierre. Since March 2012, Klépierre stock has gained more than 40%. But caution is warranted. If Simon decided to lift its stake above 30%, it would have to launch a full takeover offer.

Simon Property couldn’t be reached for comment.

For Klépierre, the sale of its malls won’t be without consequences. The proposed transaction should reduce the real estate company’s net asset value – the key barometer of a real estate company’s value - by €0.7 per share, the company said. Last summer, Klépierre published first half earnings that revealed a NAV of €29.3 per share.

But the deal also has its financial benefits. Klépierre should receive net proceeds of more than €1.5 billion, which should allow it to cut its loan-to-value debt ratio to less than 40%. The company would then be in a much better position to finance its €2.3 billion development pipeline. Klépierre might even consider some small acquisitions, the company said on Monday.

Klépierre still is a much smaller rival to Unibail-Rodamco. Generally considered the best in class of its kind in Europe, the French-Dutch company is about twice as big as Klépierre. But by selling the malls that are close to Carrefour’s hypermarkets to focus on more prestigious ones with prestigious brands, the Simon Property operated company is looking a lot more like its bigger competitor.